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Positive signs for the 2016 housing market

The UK housing market is set for a quarter of steady growth in prices and sales, and therefore, the foundations of the future trends are currently being laid. The Government is working actively towards setting the correct scene for a more active and dynamic landscape, encouraging industry engagement and policies which will ease the housing crisis. Looking forward, these changes will hopefully accommodate increasing demand by allowing more homes to be built across the UK.

When analysing the bigger picture, employment levels are climbing (with the lowest rate of unemployment we have seen in 7 years) and in particular, listed house-builders are up by two-thirds since 2014. This is brilliant news, as housing activity should continue to grow as wages increase, which is accompanied by real wage growth.

Yes, regional differences are present, however, those who have invested in the London ‘doughnut’ and cities such as Birmingham and Manchester, will enjoy the strongest price growth (JLL Residential Research). Investors can take a deep breath, as the economy should become stronger, boosting housing demand. The astute investor, will however, keep a close watch on International factors such as the UK’s relationship with the EU and global stock market movements.

Those concerned about buying costs will be aware that deposits and stamp duty will become a greater burden, however, the long-term return remains huge when the right project is picked. Those investing in property will make money and receive brilliant returns, however, it will just take a little longer.